Golden Genesis and the Teotonio Vilela Foundation: commercializing PV residential electrification with a not-for-profit partner

This article presents a case study of a project which provides photovoltaic-based rural electrification in the state of Alagoas in northeastern Brazil. The project, the Luz do Sol Programme (LdS), was initiated in mid-1996 by the Golden Genesis Company (Golden) and the Fundação Teotônio Vilela (FTV). The article emphasizes some noteworthy characteristics of the project: the partnership between US commercial and Brazilian philanthropic interests; the financial aspect, a dedicated line of credit requiring only the equipment itself as security; and the local ownership and management of system operations, collections, and routine maintenance.
In 1996, the Golden Genesis Company had developed a central battery charging system to bring the price of electrification within the range of the rural poor; it financed the US content of the systems, with the Bank of the Northeast of Brazil (BN) financing the Brazilian content. The article traces the long and arduous path to establish the programme, including both bureaucratic and technical challenges. These difficulties brought the project to an impasse in August of 1998, and Golden withdrew. FTV then re-negotiated the agreement with BN, changing the technical approach to individual solar home systems. This improved the situation, and the project has since enjoyed 100% loan repayment rates from the entrepreneurs. In June 1999, BP/Solarex became FTV's new commercial partner. The project currently shows promise of becoming the commercially viable programme originally envisaged by Golden, with commercial and technical decision-making at the local level.